2014

Bar Examination Coverage

VIII. Procedure and Jurisdiction

A. Labor Arbiters


1. Jurisdiction

Nature of jurisdiction
v The jurisdiction of labor arbiters is original and exclusive in nature; they do not
have appellate jurisdiction.
v The cases that the labor arbiter can hear and decide are employment-related.
Where there is no employer-employee relationship and no issue is involved which
may be resolved by reference to the LCP, other labor statutes or any CBA, it is
the RTC that has jurisdiction.

Cases under the jurisdiction of LAs
v Art. 224 of the LCP provides that labor arbiters have jurisdiction over the
following cases:
1. Unfair labor practice (ULP) cases;
2. Termination disputes (or illegal dismissal cases);
3. Cases that workers may file involving wages, rates of pay, hours of work
and other terms and conditions of employment, if accompanied with
claim for reinstatement.
4. Claims for actual, moral, exemplary and other forms of damages arising
from the employer-employee relations;
5. Cases arising from any violation of Article 264 of this Code, including
questions involving the legality of strikes and lockouts;
6. Except claims for Employees Compensation, Social Security, Medicare
and maternity benefits, all other claims arising from employer-employee
relations, including those of persons in domestic or household service,
involving an amount exceeding five thousand pesos (P5,000.000 )
regardless of whether accompanied with a claim for reinstatement.
7. Monetary claims of overseas contract workers arising from employer-
employee relationship under the Migrant Workers Act as amended.
8. Wage distortion disputes in unorganized establishments not voluntarily
settled by the parties pursuant to RA 6727 (in organized establishments,
jurisdiction is vested with voluntary arbitrators)
9. Enforcement of compromise agreements when there is non-compliance
by any of the parties pursuant to Art. 227 of the LCP, as amended; and
10. Other cases as may be provided by law.
v Money claims falling within the original and exclusive jurisdiction of the labor
arbiters may be classified as follows:
1. Any money claim, regardless of amount, accompanied with a claim for
reinstatement (which involves a termination case); or
2. Any money claim, regardless of whether accompanied with a claim for
reinstatement, exceeding the amount of P5,000.oo per claimant (which
does not necessarily involve termination of employment)

Jurisdiction of LAs vis--vis NLRC
v NLRC only exercises exclusive appellate jurisdiction over cases decided by the
LAs over cases which the LAs have original and exclusive jurisdiction.
v The NLRC cannot have appellate jurisdiction if a claim does not fall within the
exclusive original jurisdiction of the LA.
v Labor arbiters however exercise concurrent jurisdiction with the NLRC with
respect to contempt cases.

Labor Arbiter v. Regional Director
v Under Art. 129, jurisdiction of the Regional Director is limited to claims for

v The Labor Arbiter exercises jurisdiction over all other claims arising from
employer-employee relations including those of persons in domestic or
household service involving an amount not exceeding P5,000, whether or not
accompanied with a claim for reinstatement.

Contempt powers
v Labor arbiters, concurrent with the NLRC, exercise contempt powers. The
Chairman or any commissioner or labor arbiter may summarily adjudge guilty of
direct contempt any person committing any act of misbehavior in the presence
of or so near the Chairman or any Commissioner or Labor Arbiter as to obstruct
or interrupt the proceedings before the same, including disrespect toward said
officials, offensive acts towards others, or refusal to be sworn or to answer as a
witness or to subscribe to an affidavit or deposition when lawfully required to do
so. (Sec. 1, Rule IX, 2011 NLRC Rules of Procedure
v Labor arbiters may also cite any person for indirect contempt. (Sec. 2, ibid)

Injunction
v The 2011 NLRC Rules do not grant injunction power to the labor arbiters. Art. 218 of
the Labor Code grants injunctive power only to the Commission which obviously
refers to the NLRCs various divisions and not to labor arbiters.

2. Reinstatement pending appeal

Effect of perfection of appeal on execution
v The perfection of an appeal shall stay the execution of the decision of the labor
arbiter except execution for reinstatement pending appeal. (Sec. 3, Rule XI of 2011
Rules)
v Art. 223 of the LCP is clear that an award by the Labor Arbiter for reinstatement shall
be immediately executory even pending appeal and the posting of a bond by the
employer shall not stay the execution for reinstatement. (Pioneer Texturizing Corp. v.
NLRC, GR No. 118651, [1997])

Effect of failure or refusal to immediately reinstate even pending appeal
v Labor arbiter shall immediately issue a writ of execution, even pending appeal,
directing the employer to :
(1) immediately reinstate the dismissed employee either (a) physically or
(b) in the payroll; and
(2) to pay the accrued salaries as a consequence of such non-
reinstatement. (Sec. 9, Rule XI, 2011 NLRC Rules)
v Even if the order of reinstatement is reversed on appeal, it is obligatory on the part of
the employer to reinstate and pay the wages of the dismissed employee during the
period of the appeal until reversal by the higher court. On the other hand, if the
employee has been reinstate during the appeal period and such reinstatement order
is reversed with finality, the employee is not required to reimburse whatever salary
he received for he is entitled to such, more so if he actually rendered services during
the period. (Pfizer v. Velasco, GR No. 117467,[2011])
v Unless there is a restraining order, it is ministerial upon the labor arbiter to
implement the order of reinstatement and it is mandatory on the employer to comply
therewith. (Garcia v. PAL, GR No. 164856, [2009])

3. Requirements to perfect appeal to NLRC

Appeal is perfected when
v The appeal is perfected when:
1. Filed within the reglementary period of 10 calendar days from receipt if
it involves a decision, award or order of the labor arbiter, or 5 calendar
days when it involves a decision or resolution of the regional director.
2. Verified by the appellant himself in accordance with Sec. 4, Rule 7 of the
Rules of Court, as amended

5.

Accompanied by (i) proof of payment of the required appeal fee; (ii)

posting of cash or surety bond by the employer if the decision involves a
monetary award equivalent in amount to the monetary award, (iii) a
certificate of non-forum shopping; and (iv) proof of service upon other
parties. (Sec. 4, Rule VI, 2011 Rules)
v Mere notice of appeal without complying with the aforementioned requisites shall
not stop the running of the period for perfecting an appeal.

Grounds for filing appeal
v If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter
or Regional Director;
v If the decision, award or order was secured through fraud or coercion, including graft
and corruption;
v If made purely on questions of law; and/or
v If serious errors in the findings of facts are raised which, if not corrected would cause
grave or irreparable damage or injury to the appellant. (Sec. 2, Rule VI, 2011 Rules)

Bond is required for perfection of appeal
v In case the decision of the Labor Arbiter or Regional Director involves a monetary
award, an appeal by the employer may be perfected only upon posting of a bond.
(Sec. 6, Rule VI, 2011 Rules)

What are the forms of the appeal bond
v It shall either be in the form of cash deposit or surety bond equivalent in amount to
the monetary award, exclusive of damages and attorneys fees. (Sec. 6, Rules VI, 2011
Rules)

Who may issue a surety bond
v It shall be issued by a reputable bonding company duly accredited by the Commission
or the Supreme Court and shall be accompanied by original or certified true copies of:
1. A joint declaration under oath by the employer, his counsel, and the
bonding company, attesting that the bond posted is genuine, and shall
be in effect until final disposition of the case;
2. An indemnity agreement between the employer-appellant and bonding
company;
3. Proof of security deposit or collateral securing the bond, provided, that
a check shall not be considered as an acceptable security;
4. A certificate of authority from the Insurer Commission;
5. Certificate of registration from the SEC;
6. Certificate of authority to transact surety business form the Office of the
President;
7. Certificate of accreditation and authority from the Sc; and
8. A notarized board resolution or secretarys certificate from the bonding
company showing its authorized signatories and their specimen
signatures. (Sec. 6, Rule VI, 2011 NLRC)

Period within which a cash or surety bond shall be valid and effective
v From the date of deposit until the case is finally decided, resolved or terminate, or
the award satisfied. This condition shall be deemed incorporated in the terms and
conditions of the surety bond, and shall be binding on the appellants and the bonding
company. (Sec. 6, Rule VI, 2011 NLRC)

Effect if bond is found to be irregular or not genuine
v The Commission shall cause the immediate dismissal of the appeal, and censure or
cite in contempt the responsible parties and their counsels, or subject them to
reasonable fine or penalty. (Sec. 6, Rule VI, 2011 Rules)

Reduction of bond, when allowed
v Generally, the appeal bond may not be reduced.

What constitutes reasonable amount; the Mcburnie Rule

v To ensure the provisions of Section 6, Rule VI of the NLRC Rules that give parties the
chance to seek a reduction of the appeal bond are effectively carried out, without
however defeating the benefits of the bond requirement in favor of a winning
litigant, all motions to reduce bond that are filed with the NLRC shall be accompanied
by the posting of a cash or surety bond equivalent to 10% of the monetary award that
is subject of the appeal, which shall provisionally be deemed the reasonable amount
of the bond in the meantime that an appellants motion is pending resolution by the
Commission. Only after the posting of a bond in the required percentage shall an
appellants period to perfect an appeal under the NLRC Rules be deemed suspended.
v The percentage of the bond that is set by this guideline is merely provisional. The
NLRC retains its authority and duty to resolve the motion and determine the final
amount of bond that shall be posted by the appellant, still in accordance with the
standards of meritorious grounds and reasonable amount.
v Should the NLRC after considering the motions merit, determine that a great
amount or the full amount of the bond needs to be posted by the appellant, then the
party shall comply accordingly. The appellant shall be given a period of 10 days from
notice of the NLRC order within which to perfect the appeal by posting the required
appeal bond. (Andrew Mcburnie v. Eulalio Ganzon, GR Nos. 178034 , 178117 and GR No.
186984-85, [2013])

B. National Labor Relations Commission (NLRC)

1. Nature

The NLRC
v The NLRC is an administrative body with quasi-judicial functions and the principal
government agency that hears and decides labor-management disputes; it is
attached to the DOLE solely for program and policy coordination.


Allocation of powers and functions
v En Banc
o Promulgating rules and regulations governing the hearings and disposition
of cases before any of its divisions and regional branches.
o Formulating policies affecting its administration and operations.
o On temporary or emergency basis, to allow cases within the jurisdiction of
any division to be heard and decided by any other division whose docket
allows the additional workload and such transfer will not expose litigants to
unnecessary additional expense.
v Division (8 Divisions with 3 members)
o Adjudicatory
o All other powers, functions and duties
o Exclusive appellate jurisdiction over cases within their respective territorial
jurisdiction.

2. Jurisdiction

2 Kinds of Jurisdiction
v Exclusive original jurisdiction
o Certified labor disputes or likely to cause a strike or lockout in an industry
indispensable to national interest, certified to it by the SLE or the President
for compulsory arbitration
o Injunction in ordinary labor disputes to enjoin or restrain any actual or
threatened commission of any or all prohibited or unlawful acts or to require
the performance of a particular act in any labor dispute which if not
restrained or performed forthwith may cause grave or irreparable damage
to any party
o Injunction in strikes or lockouts under Art. 264 of the LCP
o Contempt cases

of workers amounting to not more than P5,000.000 and not accompanied

by claim for reinstatement.

Powers of the NLRC
v Rulemaking power - promulgation of rules and regulations:
o Governing disposition of cases before any of its division/regional offices
o Pertaining to its internal functions
o As may be necessary to carry out the purpose of the LC.
v Power to issue compulsory processes (administer oaths, summon parties, issue
subpoenas)
v Power to investigate matters and hear disputes within its jurisdiction (adjuidicatory
powers)
v Contempt power
v Ocular inspection
v Power to issue injunctions and restraining orders

2. Effect of NLRC reversal of Labor Arbiters order of reinstatement

Reinstated employee who collects wages during period of appeal is not required to reimburse
v Even if the order of reinstatement is reversed on appeal, it is obligatory on the part of
the employer to reinstate and pay the wages of the dismissed employee during the
period of the appeal until reversal by the higher court. On the other hand, if the
employee has been reinstate during the appeal period and such reinstatement order
is reversed with finality, the employee is not required to reimburse whatever salary
he received for he is entitled to such, more so if he actually rendered services during
the period. (Pfizer v. Velasco, GR No. 117467,[2011])

3. Remedies

Judicial review of NLRC decisions
v Decisions of the NLRC may be reviewed through a petition for certiorari under Rule
65 of the Rules of Court
v This should be initially filed with the Court of Appeals in strict observance of the
doctrine on the hierarchy of courts as the appropriate forum for the relief desired.
The Court of Appeals is procedurally equipped to resolve unclear or ambiguous
factual finding, aside from the increased number of its component divisions. (St.
Martin Funeral Home v. NLRC, GR No. 130866 [1998]).

Injunction or temporary restraining order (TRO)
v These are orders which may require, forbid, or stop the doing of an act. The power of
the NLRC to enjoin or restrain from any or all prohibited or unlawful acts under Art.
218 of the LCP can only be exercised in labor disputes.
v A restraining order is generally regarded as an order to maintain the subject of
controversy in status quo until the hearing of an application for a temporary
injunction. (BF Homes v. Reyes, GR No.L-30690 [1982]).
v Only the following may issue a TRO:
o The President (Art. 263(g), LCP)
o Secretary of Labor (Art. 263 (g), LCP)
o NLRC (Art. 218, LCP)
v Art. 218 of the LCP limits the grant of injunctive power to the NLRC. The LA is
excluded statutorily. Hence, no NLRC Rules can grant him that power.

4. Certified cases

Certified Cases, defined
v There are cases certified or referred to the Commission for compulsory arbitration
under Art. 264 (g) of the LCP dealing with national interest cases.
v A national interest dispute may be certified to the NLRC even before a strike is
declared since Art. 263 (g) of the LC does not require the existence of a strike, but

duty to implement the order of the Secretary. As an implementing body, its authority
did not include the power to amend the Secretarys order. (UST v. NLRC and UST
Faculty Union, GR No. 89920 [1990]).

Effect of defiance from certification order

v Non-compliance with the certification order of the Secretary shall be considered as
an illegal act committed in the course of the strike or lockout and shall authorize the
Commission to enforce the same under pain of immediate disciplinary action,
including dismissal or loss of employment status or payment by the locking out
employer of backwages, damages and/or other affirmative relief, even criminal
prosecution against the liable parties. (Sec. 4, Rule VIII, 2011 Rules)
Procedure in deciding certified cases
1. Unless there is a necessity to conduct a clarificatory hearing, the Commission shall
resolve all certified cases within 30 calendar days from receipt by the assigned
Commissioner of the complete records, which shall include the position papers of the
parties and the order of the Secretary denying the motion for reconsideration of the
certification order, if such motion has been filed.
2. Where a clarificatory hearing is needed, the Commission shall, within five days from
receipt of the records, issue a notice to be served on the parties through the fastest
means available, requiring them to appear and submit additional evidence, if any.
3. Notwithstanding the necessity for a clarificatory hearing, all certified cases shall be
resolved by the Commission within 60 calendar days from receipt of the complete
records.
4. No motion for postponement or extension shall be entertained. (Sec. 5, Rule VIII, 2005
Rules)

C. Bureau of Labor Relations Med-Arbiters


1. Jurisdiction (Original and appellate)

Functions and Jurisdiction
v Union matters
v Collective bargaining registry and
v Labor education


The BLR no longer handles all labor management disputes. Jurisdiction over these
are now exercised by other offices such as:
(a) Dole Regional Offices
(b) Office of the Secretary of Labor
(c) NLRC
(d) POEA
(e) OWWA
(f) SSS-EC
(g) RTWPB
(h) NWPC
(i) Regular courts over intra-corporate disputes


Med-Arbiters
v An officer in the Regional Office or Bureau authorized to hear, conciliate and decide
representative cases or assists in the disposition of intra or inter-union disputes.

Cases that fall within the BLRs jurisdiction
v Inter-union disputes
v Intra-union disputes
v Other related labor relations disputes

Coverage of inter/intra-union disputes
v Conduct or nullification of election of union and workers association officers

v Opposition to application for union or CBA registration

v Violations of or disagreements over any provision of the constitution and by-laws of
union or workers association
v Disagreements over chartering or registration of labor organizations or the
registration of CBAs
v Violations of the rights and conditions of membership in a union or workers
association;
v Violations of the rights of LLW, except interpretation of CBAs
v Validity/invalidity of impeachment/expulsion/suspension or any disciplinary action
meted against any officer and member, including those arising from non-compliance
with the reportorial requirements under Rule V
v Such other disputes or conflict involving the rights to self-organization, union and CB

o Between and among LLO and
o Betweeng and among members of a union or workers association. (Sec. 1,
Rules XI, Book V, IRR as amended by DO 40-F-03)

Other related relations disputes, defined

v Any conflict between:
o A labor union and the employer; or
o A labor union and a group that is not a LO; or
o A labor union and an individual who is not a member of such union.
v Cancellation of registration of unions and workers associations filed by individual/s
other than its members or group that is not a LO.
v A petition for interpleader involving labor relations. [Sec. 2, Rule XI, Book V, IRR as
amended by DO 40-F-03)

Who may file a complaint or petition involving intra/inter-union disputes
v A legitimate labor organization or its members. (Sec. 5, Rule XI, DO. 40-03)
v If the issue involves the entire membership, the complaint must be signed by at least
30% of the entire membership of the union.
v If the issues involve a member only, only the affected member may file the
complaint.

Appeal of decisions in an inter/intra-union dispute

v A decision in an inter/intra-union dispute may be appealed from.
v The decision may be appealed by any of the parties within 10 days from receipt
thereof.
v The decision is appealable to the:
o BLR if the case origination from the Med-Arbiter or Regional Director
o Secretary of Labor if the case originated from the BLR.
The extent of the BLRs authority
v It may hold a referendum election among the members of a union for the purpose of
determining whether or not they desire to be affiliated with a federation.
v But the BLR has no authority to:
o Order a referendum among union members to decide whether to expel or
suspend union officers
o Forward a case to the Trade Union Congress of the Philippines for arbitration
and decision.

Administrative functions of the BLR
v Regulation of the labor unions
v Keeping the registry of labor unions
v Maintenance of a file of the CBA
v Maintenance of a file of all settlements or final decisions of the SC, CA, NLRC and
other agencies on labor disputes

litigants against each other and other parties-in-interest shall be governed by the
decision ordered.
v The filing or pendency of any inter/intra-union disputes is not a prejudicial question to
any petition for certification election, hence it shall not be a ground for the dismissal
of a petition for certification of election or suspension of the proceedings for the
certification election. (Sec. 3, Rule XI, DO. 40-03)

D. National Conciliation and Mediation Board

1. Nature of proceedings


Alternative modes of settlement of labor disputes under Art. 211 of LCP
v Voluntary arbitration
v Conciliation
v Mediation


Nature of proceedings before NCMB
v The proceedings are non-litigious.


Mandatory conciliation-mediation
v All issues arising from labor and employment shall be subject to mandatory
conciliation-mediation. The Labor Arbiter or the appropriate DOLE agency or office
that has jurisdiction over the dispute shall entertain only endorsed or referred cases
by the duly authorized officer. (Art. 228(a), as amended by RA 10396)
v The exceptions are: (a) when grievance machinery and voluntary arbitration; and (b)
when excempted by the Secretary of Labor.
v Any or both of the parties involved in the dispute may pre-terminate the conciliation-
mediation proceedings and request referral or endorsement to the appropriate
DOLE agency or office which has jurisdiction over the dispute, or if both parties so
agree, refer the unresolved issues to voluntary arbitration. (Art. 228 (b), as amended
by RA 10396)



Arbitration, defined
v It is the submission of a dispute to an impartial person for determination on the basis
of evidence and arguments of the parties. The arbiters decision or award is
enforceable upon the disputants. It may be voluntary (by agreement) or compulsory
(required by statutory provision) (Luzon Development Bank v. Assn of Luzon Devt
Bank Employees, GR No. 120319 [1995]).
v The court cannot fix resort to voluntary arbitration. Resort to voluntary arbitration
dispute should not be fixed by the court, but by the parties relying on their strengths
and resources.

2. Conciliation vs. Mediation

Conciliation
Mediation
is conceived of as a mild form of Is a mild intervention by a neutral third
intervention by a neutral third party
party
The conciliatior-mediator relying on his The conciliator-mediator, whereby he
persuasive expertise, who takes an starts advising the parties or offering
active role in assisting parties by trying solutions or alternatives to the problems
to keep disputants talking, facilitating with the end in view of assisting them
other procedural niceties, carrying towards voluntarily reaching their own
messages back and forth, between the mutually acceptable settlement of the
parties and generally being a good dispute.
fellow who tries to keep things calm
and forward-looking in a tense
situation
It is the process where a disinterested It is when a third party studies each side
3rd party meets with management and of the dispute and then makes proposals

Legal basis of conciliation and mediation

v Sec. 3 of Art 13 of the Constitution provides that [T]he State shall promote xxx the
preferential use of voluntary modes of settling disputes including conciliation and
shall ensure mutual compliance by the parties thereof in order to foster industrial
peace.

Conciliation and mediation, who may avail

v Any party to a labor dispute, either the union or management, may seek the
assistance of the NCMB or any of its Regional Branches by means of formal request
for reconciliation and preventive mediation. Depending on the nature of the
problem, a request may be filed in the form of consultation, notice of preventive
mediation or notice of strike/lockout.

Request for conciliation and mediation, where filed

v An informal or formal request for conciliation and mediation service can be filed at
the NCMB Central Office or any of its Regional Branches. There are at present 14
regional offices of the NCMB which are strategically located all over the country for
the convenient use of prospective clients.

3. Preventive mediation

Preventive mediation, defined
v Refers to the potential labor dispute which is the subject of a formal or informal
request for conciliation and mediation assistance sought by either or both paties or
upon the initiative of the NCMB to avoid the occurrence of an actual labor dispute.


Notice for preventive mediation, who may file
v Any certified or duly recognized bargaining representative may file a notice or
declare a strike or request for preventive mediation in cases of bargaining deadlocks
and ULPs. The employer may file a notice or declare a lockout or request for
preventive mediation in the same cases. In the absence of a certified or duly
recognized bargaining representative, any LLO in the establishment may file a notice,
request preventive mediation or declare a strike, but only on grounds of ULP. (Sec. 3,
Rule IV, the NCMB Manual of Procedure)
v If the notice was filed not by the Union, but by its individual members, the NCMB has
no jurisdiction to entertain it. Only a certified or duly recognized bargaining agent
may file a notice or request for preventive mediation.
v Morever, the notice or request may not be filed by the Federation on behalf of its
local chapter. A local union does not owe its existence to the federation with which it
is affiliated. It is a separate and distinct voluntary association owing its creation to
the will of its members. Mere affiliation does not divest the local union of its own
personality, neither does it give the mother federation the license to act
independently of the local union. It only gives rise to a contract of agency, where the
former acts in representation of the latter. Hence, local unions are considered
principals while the federation is deemed merely their agent (Insular Hotel Employees
Union NFL v. Waterfront Insular Hotel Davao, GR Nos. 174040-41 [2010]).

Valid issues for notice of strike/lockout or preventive mediation
v A notice of strike or lockout may be filed on ground of ULP acts, gross violation of
the CBA, or deadlock in CBAs. A complaint on any of the above ground must be
specified in the NCMB Form or the proper form used in the filing of complaint.
v In case of preventive mediation, any issue may be brought before the NCMB Central
Office or its regional offices for conciliation and possible settlement through a letter.
This method is more preferable than a notice of strike/lockout because of the non-
adversarial atmosphere that pervades during the conciliation conferences.


Advantages of conciliation and mediation
v Conciliation and mediation is non-litigious/non-adversarial, less expensive and
expeditious. Under this informal setup, the parties find it more expedient to fully

v The parties are bound to honor any agreement entered into by them. It must be
pointed out that such an agreement came into existence as a result of painstaking
efforts among the union, management, and the conciliator-mediator. Therefore, it is
only logical to assume that the conciliator assigned to the case has to follow up and
monitor the implementation of the agreement.

Conciliation and mediation during actual strike or lockout

v An actual strike or actual lockout may be subject to continuing conciliation and
mediation services. In fact, it is at this critical stage that such conciliation and
mediation services by fully given a chance to work out possible solution to the labor
dispute. With the ability of the conciliator-mediator to put the parties at ease and
place them at a cooperative mood, the final solution of all the issues involved may yet
be effected and settled.
Conciliation and mediation still possible even when assumed or certified to the NLRC
v Parties are not precluded from availing of the services of an NCMB Conciliator-
Mediator as the duty to bargain collectively subsists until the final resolution of all
issues involved in the dispute. Conciliation is so pervasive in application that, prior to
a compulsory arbitration award, the parties are encouraged to continue to exhaust
all possible avenues of mutually resolving their dispute, especially through
conciliation and mediation services.

E. Dole Regional Directors

Jurisdiction
v Under Art. 129 of the Labor Code, the Regional Directors or any of the duly
authorized hearing officers of DOLE have jurisdiction over claims for recovery of
wages, simple money claims and other benefits, provided that:
1. The claim must arise from employer-employee relationship;
2. The claimant does not seek reinstatement; and
3. The aggregate money claim of each employee does not exceed P5,000.00

v In the absence of any of those requisites, it is the Labor Arbiter who shall have the
jurisdiction over the claims arising from employer-employee relations, except claims
for Employees Compensation, SSS, PhilHealth, and maternity benefits, pursuant to
Art. 217.


Adjudicatory power of the RDs
v The Regional Director or any of his duly authorized hearing officer is empowered
through summary proceeding and after due notice, to hear and decide cases
involving recovery of wages, and other monetary claims and benefits, including legal
interests.

F. DOLE Secretary


1. Visitorial and enforcement powers

Powers of the Secretary
v Visitorial powers
v Enforcement powers
v Appellate or power to review

Visitorial powers
v Visitorial powers constitutes:
o Access to employers records and premises at any time of the day or night,
whenever work is being undertaken
o To copy said records
o Question any employee and investigate any fact, condition or matter which
may be necessary to determine violations or which may aid in the

o
o
o

prescribed forms and act in violations of any provisions of the LC on

recruitment and placement. (Art. 37)
Have access to employers records and premises to determine violations of
any provisions of the Labor Code on recruitment and placement. (Art. 128)
Conduct industrial safety inspections of establishments. (Art. 165)
Inquire into the financial activities of LLO and examine their books of
accounts upon the filing of the complaint under oath and duly supported by
the written consent of at least 20% of the total membership of the LO
concerned.

Enforcement powers
v Issue compliance orders
v Issue writs of execution for the enforcement of their orders, except in cases where
the employer contests the findings of the labor officer and raise issues supported by
documentary proof which were not considered in the course of inspection
v Order stoppage of work or suspension of operation when non-compliance with the
law or implementing rules and regulations poses grave and imminent danger to
health and safety of workers in the workplace
v Require employers to keep and maintain such employment records as may be
necessary in aid to the visitorial and enforcement powers
v Conduct hearings within 24 hours to determine whether:
o An order for stoppage of work or suspension of operations shall be lifted or
not; and
o Employer shall pay the concerned employees their salaries in case the
violation is attributable to his fault. (As amended by RA 7730); (Guico v.
Secretary, GR No. 131750 [1998])
Violations under Art. 128 of the LC
v Obstruct, impede, delay or otherwise render ineffective the orders of the SLE or his
authorized representatives
v Any government employee found guilty of, or abuse of authority, shall be subject to
administrative investigation and summary dismissal from service.

Limitations to other courts

v In relaition to enforcement orders issued under Art. 128 of the LCP, no inferior court
or entity shall:
o Issue a temporary or permanent injunction or restraining order; or
o Assume jurisdiction over any case.

Instances when enforcement powers may not be used
v Case does not arise from the exercise of visitorial power
v When employer-employee relationship ceased to exist at the time of the inspection
v If employer contests the finding of the labor regulation officer and such contestable
issue is not verifiable in the normal course of inspection.

No power to determine existence of employer-employee relationship
v The visitorial and enforcement powers of the Secretary comes into play only in
cases when the relationship of employer-employee still exists. The Secretarys
power does not apply in two instances, namely: (a) where the employer-employee
relationship has ceased; and (b) where no such relationship has ever existed. The
question of employer-employee relationship becomes a battle of evidence, the
determination of which should be comprehensive and intensive and therefore best
left to the specialized quasi-judicial body that is the NLRC (Peoples Broadcasting v.
Secretary of Labor, GR No. 179652, [2009]).

2. Power to suspend/ effects of termination

Power to suspend effects of termination
v Under Art. 277(b) of the LC, the Secretary may suspend the effects of the termination

company; Art. 263 (g) of LC on assumption of jurisdiction is applicable in case of

strike in establishments affecting national interest, not just the company.

3. Assumption of jurisdiction


Assumption of jurisdiction over a labor dispute
v When there is a labor dispute causing or likely to cause a strike affecting national
interest, the Secretary on his own initiative or upon petition by any of the parties,
may either assume jurisdiction or certify the dispute to the NLRC for compulsory
arbitration.
v Art. 263 (g) of the LC is both an extraordinary and preemptive power to address an
extraordinary situation (a strike or lockout in an industry indispensable to the
national interest). As the term assume jurisdiction connotes, the intent of the law
is to give the Secretary full authority to resolve all matters within the dispute that
gave rise to or which arose out of the strike or lockout it includes and extends to all
questions and controversies arising from or related to the dispute, including cases
over which the labor arbiter has exclusive jurisdiction (Bagong Pagkakaisa ng
Manggagawa ng Triumph International v. Secretary, GR No. 167401, [2010]).


Effect of assumption or certification
v It automatically enjoins the intended or impending strike or lockout as specified in
the assumption or certification order. If one has already taken place at the time of
the assumption or certification, all striking or locked out employees shall immediately
return to work and the employer shall immediately resume operations and readmits
all workers under the same terms and conditions prevailing before the strike or
lockout.

Assumption of jurisdiction may be exercised without necessity of prior notice or hearing
v The rationale for Secretarys assumption of jurisdiction can justifiably rest on his own
consideration of the exigency of the situation in relation to the national interests
(Capitol Medical Center v. Trajano, GR No. 155690 [2005]).

4. Appellate jurisdiction

Cases within the appellate jurisdiction of the Secretary
v Appeal from and adverse decision of the POEA (Sec. 1, Part VII, Rule V, 2003 POEA rules
and Regulations; Eastern Midterranean Maritime v. Surio, GR No. 154213, [2012]).
v Appeal the order or results of a certification election on the ground that the Rules
and Regulations or parts thereof established by the Secretary for the conduct of
election have been violated. (Art. 259, LC)
v A review of cancellation proceedings decided by the BLR in the exercise of its
exclusive and original jurisdiction (Abbot Laboratories Philippines v. Abbott
Laboratories Employees Union, GR No. 131374 [2000]).


Cases not within the appellate jurisdiction of the Secretary
v Decisions of the BLR rendered in the exercise of its appellate power to review the
decision of the Regional Director in a petition to cancel the unions certificate of
registration, said decisions being final and inappealable.
v Decisions of the RD involving petitions for examination of union accounts. It is the
BLR which exercises appellate jurisdiction in such case (Barles v. Bitonia, GR No. 120270
[1999]).

5. Voluntary arbitration powers

Powers of the Secretary in voluntary arbitration
v The Secretary may authorize any official to act as voluntary arbitrator upon the
written request and agreement of the parties to a labor dispute (Art. 212 (n), LCP).
v He shall also approve, upon recommendation of the NCMB the guidelines in
administering the voluntary arbitration fund. (Art. 276 (f), LC)

Grievance, defined
v Any question by either the employer or the union regarding the interpretation or
application of the CBA or company personnel policies or any claim by either party
that the other party is violating any provision of the CBA or company personnel
policies.

Grievance machinery
v Refers to the mechanism for the adjustment and resolution of grievances arising
from the interpretation or implementation of a CBA and those arising from the
interpretation or enforcement of company personnel policies. It is part of the
continuing process of CB.

Grievance procedure
v It is the internal rules of procedure established by the parties in their CBA with
voluntary arbitration as the terminal step, which are intended to resolve all issues
arising from the implementation and interpretation of their CBA.
v Refers to the system of grievance settlement at the plant level as provided in the
CBA. It usually consists of successive steps starting as the level of the complainant
and his immediate supervisor and ending, when necessary, at the level of the top
union and company officials.

Subject matter of grievance
v Any grievance arising from:
o Interpretation or implementation of the CBA; and
o The interpretation or enforcement of company personnel policies.
v Art. 217 (c) of the LC requires labor arbiters to refer cases involving the
implementation of CBAs to the grievance machinery provided threin and to voluntary
arbitration. Likewise, Art. 260 of the LC clarifies that such disputes must be referred
first to the grievance machinery and, if unresolved, within seven day, they shall
automatically be referred to voluntary arbitration (Miguela Santuyo v. Remerco
Garments Manufacturing, GR No. 174420 [2010]).

2. Voluntary arbitrator

a. Jurisdiction
v The arbitrator is expected to decide only those questions expressly delineated by the
submission agreement. Nevertheless, the arbitrator can assume that he has the
necessary power to make a final settlement since arbitration is the final resort for the
adjudication of the disputes (Ludo and Luym Corp v. Saornida, GR No. 174420 [2010]).


Cases within the jurisdiction of the voluntary arbitrator
v Original and exclusive jurisdiction over:
o All unresolved grievances arising from the:
Implementation or interpretation of the CBA
Interpretation or enforcement of company personnel policies.
o Wage distortion issues arising from the application of any wage orders in
organized establishments
o Those arising form interpretation and implementation of productivity
incentive programs under RA 6971
o Violation of the CBA provisions which are not gross in character are no
longer treated as ULP and shall be resolved as grievances under the CBA
o Any other labor disputes upon agreement by the parties including ULP and
bargaining deadlock. (Art. 262, LC)
v Gross violation of CBA provisions shall mean flagrant and/or malicious refusal to
comply with the economic provisions of such agreement.
v Under Art. 217, it is clear that a LA has original and exclusive jurisdiction over
termination disputes. However, under Art. 261, a VA has original and exclusive
jurisdiction over grievances arising from the interpretation or enforcement of
company policies. As a general rule then, termination disputes should be brought

NLRC and Dole has no jurisdiction over disputes under the jurisdiction of the voluntary
arbitrator
v NLRC and DOLE has no jurisdiction over disputes, grievances and matters under the
exclusive and original jurisdiction of the voluntary arbitrators.
v They should immediately dispose and refer the same to the grievance machinery or
voluntary arbitration provided in the CBA.
v The parties may choose to submit the dispute to voluntary arbitration proceedings
before or at the stage of compulsory arbitration proceedings.

b. Procedure


How initiated
v Submission agreement where the parties define the disputes to be resolved
v Demand notice invoking the collective agreement arbitration clause


Voluntary arbitrator
v Any person accredited by the NCMB as such
v Any person named or designated in the CBA by the parties to act as their VA
v One chosen with or without the assistance of the NCMB, pursuant to a selection
procedure agreed upon in the CBA
v Any official that may be authorized by the Secretary to act as VA upon the written
request and agreement of the parties to a labor dispute. (Art. 212 (n), LC)


Powers of voluntary arbitrator
v Hold hearings
v Receive evidence
v Take whatever action necessary to resolve the dispute including efforts to effect a
voluntary settlement between parties. (Art. 262-A, LC)

Nature of power of VA
v Arbitrators by the nature of their functions, act in a quasi-judicial capacity (BP 129, as
amended by RA 9702) where a question of law is involved or there is abuse of
discretion, courts will not hesitate to pass upon review of their acts.


Selection of voluntary arbitrator/panel
v The parties in a CBA shall designate in advance a VA/panel, preferably from the listing
of qualified Vas duly accredited by the NCMB, or
v Include in the agreement a procedure for the selection of such VA or panel of Vas,
preferably from the listing of qualified Vas duly accredited by the NCMB.
v In case parties fail to select one, the NCMB shall designate the VA panel based on the
selection procedure provided by the CBA (Manila Central Line Free Workers Union v.
Manila Central Line Corp, GR No. 109383 [1998]).
v Labor arbiters may be designated as voluntary arbitrators for there is nothing in the
law that prohibits LAs from also acting as voluntary arbitrators as long as the parties
agree to have him hear and decide their dispute. (ibid)

Effect of award of voluntary arbitrator
v The decision or award of the voluntary arbitrator acting within the scope of its
authority shall determine the rights of the parties and their decisions shall have the
same legal effects as judgment of the courts. Such matters of fact and law are
conclusive.

c) Remedies


Appeal
v Generally, decisions of VA are final and executory after 10 calendar days from receipt
of the copy of the award or decision by the parties. (Art. 262-A, LC)
v Art. 262-A deleted the word unappealable from Art. 263. It makes the VA award
final and executory after 10 calendar days from receipt of the copy of the award or

v However, appeal may be made to the CA via Rule 43 of the Rules of Court within 15
days from the date of receipt of VAs decision. (Luzon Devt Bank v. Assn of Luzon
Devt Bank Employees, GR No. 120319 [1995])
v As a VA acts in a quasi-judicial capacity, there is no reason why the VAs decisions
involving interpretation of law should be beyond the SCs review. Administrative
officials are presumed to act in accordance with law, yet the SC will not hesitate to
pass upon their work where a question of law is involved or where a showing of
abuse of authority or discretion in their official acts is properly raised in petitions for
certiorari (Continental Marble Corporation v. NLRC, GR No. L-43825 [1988])

H. Court of Appeals

1. Rule 65, RoC


Remedy of a party aggrieved by a decision of the NLRC
v File a petition for certiorari (Rule 65) which should be initially filed with the CA in
strict observance of the doctrine on the hierarchy of courts as the appropriate forum
for the relief desired. The CA is procedurally equipped to resolve unclear or
ambiguous factual finding, aside from the increased number of its component
divisions. (St. Martin Funeral Home v. NLRC, GR No. 130866 [1998])


Period within which petition for certiorari must be filed
v It must be filed within 60 days from notice of the judgment or from notice of the
resolution denying the petitioners motion for reconsideration. (Sec. 4, Rule 65 of the
Rules of Civil Procedure)

I. Supreme Court


1. Rule 45, Rules of Court


Appeal from judgment or final order or resolution of the CA
v A party desiring to appeal may file with the Supreme Court a verified petition for
review on certiorari under Rule 45 within fifteen days from notice of the judgment,
final order or resolution appealed from (Sea Power Shipping Enterprises v. CA, GR No.
138270 [2001])

Policy of the Supreme Court in appeals in labor cases
v The Supreme Court is very strict regarding appeals filed outside the reglementary
period for filing the same. To extend the period of the appeal is to delay the case, a
circumstance which could give the employer the chance to wear out the efforts and
meager resources of the worker that the the latter is constrained to give up for less
than what is due him. (Firestone Tire and Rubber Co v. Firestone Tire and Rubber Co.
Employees Union, GR No. 75363, [1992])

J. Prescription of Actions

Rules
Subject
Prescriptive Period
ULP
1 year from accrual of such ULP; otherwise
forever barred (Art. 290, LC)
Money claims
GR: 3 years from the time the cause of action
accrued; otherwise, forever barred. (Art. 291,
LC)

Except: If there is promissory estoppel
All money claims accruing prior to the Within one year from the date of effectivity, in
effectivity of the LC
accordance with IRR; otherwise, forever
barred.

Illegal dismissal cases

4 years which commences from the date of

formal dismissal (Mendoza v. NLRC, GR No.
122481 [1998])